Neal Roberts of Foxhill writes:
I have looked at the revised budget for KwaDukuza municipality and sadly note, whilst being adjusted, that there is no relief for ratepayers.
Employee related costs have been reduced (budgeted) by 6.5% or R29m.
No explanation whether it is no increases (which I doubt), overtime provision reduction or more efficient service? My original thought was 20% reduction or R89m.
In the real world e.g. Edcon employees are going to NIL.
• Councillors are not giving up anything. Sadly, they could give up 20% and still be well remunerated. This would equal R4.8 million.
• I do not understand why “Depreciation and Asset Impairment” of R95m can’t be eliminated from expenditure. It is not a cash expenditure but a book entry. This alone could reduce budget increases to ratepayers with no effect on cash flow.
• The most amazing is “Other Expenditure” being reduced by R89m. WOW! Was this wasteful expenditure being eliminated? I do not know.
• Not surprisingly ratepayers do not benefit from this R89m; but “Other Revenue” is reduced by R92m. I have no idea how this can happen.
The net result is a revised budget with no benefit to ratepayers in these difficult Covid times.
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